The most important technique to establish an efficient and modernized public transportationrnsystem is to conduct studies on it. In terms of economic and social growth, publicrntransportation is essential. Furthermore, providing integrated fare systems is critical forrncreating effective public transportation that enables the pursuit of objectives such asrnmaximization of demand, maximization of revenue, profit, and social welfare. The goal of thisrnresearch is to propose a fare integration system of public transportation using a zone-basedrnfare structure in the case of Addis Ababa city. rnThe study reviewed the current fare system, identify economic and social problems due to thernlack of a fare integration system, examined the best zone partition and zone-based fare settingrnapproaches, and proposed, identified, and verified the main benefits of the applying zoneÂrnbased fare integration system of public transportation such as maximization of revenue,rnmaximization of profit, reduction of fare, and minimization of passengers waiting time. Inrnorder to create the fare integration system, the zone is partitioned analytically using the valuernof the weighted mean travel distance of the ride in a city and the K-means clustering algorithmrnis employed to model the segmented zone and the zone-based fare also determined based onrnthe principle distance- based expense.rnAccordingly, the new proposed system for users' 16.66% reduction of fares, 32.33%rnminimization of passengers waiting time and for operators' maximization of revenue byrn31.52% and maximization of profit by 75.77% against the existing system. And the resultrnclarified using a numerical explanation with a graph.